Rose Oaks apartment owners say rent at renovated complex will increase

IOWA CITY - Families who like living at Rose Oaks Apartments on Iowa City's southeast side because of affordable rent and proximity to jobs and stores may be priced out of the complex after scheduled renovations.

Rose Oaks owners, who have asked hundreds of tenants to leave by this summer to make way for demolition and repairs, say they can't commit to keeping rents low.

'Unfortunately, with us doing a substantial renovation, the cost will not allow us to maintain those prices,” said Reggie Reed, director of operations for College Fund Properties II LLC, the Minnesota-based group that bought the 21-apartment complex in February.

Rose Oaks tenants, who held a news conference Tuesday, have asked owners to give them until Aug. 1 to move out. They also want College Fund Properties to pay $1,000 to families that leave before the deadline. Lastly, the group asked for 20 percent of the renovated units to be reserved for affordable housing.

Iowa City has an apartment vacancy rate of only 1.43 percent, and most of those units don't count as affordable.

While Rose Oaks needs improvements, relatively low rent and proximity to several factories make it a desirable place to live, tenants said.

'I'm head custodian at Oral-B,” said Madonna Ballinger, 51. 'I walk to and from work.” She moved into Rose Oaks March 10. Two weeks later, she got the letter asking her to vacate.

Owners of Rose Oaks Apartments, previously called Dolphin Lake Point Enclave, sent letters to tenants in March announcing leases would not be renewed because the complex, built in 1966, is undergoing 'extensive remodeling.” Tenants were encouraged to move as soon as possible to avoid limited parking, demolition noise, sidewalk obstructions and 'possible sewage issues.”

Residents have been given $500 to ease the transition, Ballinger said, but with $25 apartment applications, deposits and first month's rent, finding a new place can be a financial hardship.

'The two bedrooms are all a lot more expensive than what I pay here,” Luis Saez, 54, said through an interpreter. 'I'm afraid I'm going to end up on the street with my child because we don't have a place to go.”

Reed said he met with residents last week and agreed to extend leases. Owners don't plan to increase financial incentives. 'From our perspective, we're not requiring anyone to vacate the property,” he said.

Owners plan to raze several buildings to build a clubhouse and pool area, according to a site plan submitted to Iowa City Building Inspection Services. They also want to renovate other buildings and construct new ones.

Rose Oaks owners have talked with Iowa City officials about the possibility of getting grants or tax increment financing for the project that might allow them to keep rents down, Reed said. They are also considering another Iowa City development focused on affordable housing.

College Fund Properties has offered to give the Center for Worker Justice of Eastern Iowa $15,000 to help needy Rose Oaks residents find new housing, Reed said. The group has declined it, asking the corporation to pay that money directly to residents, Mazahir Salih, the group's president, said at the news conference.

Of 202 units occupied in March, tenants of 75 have already vacated, Reed said.